NHAI InvIT raises Rs 1,430 crore in a follow-on issuance

National Highways Infra Trust (NHAI InvIT), the infrastructure investment trust sponsored by the National Highway Authority of India (NHAI) to monetise road assets, has raised Rs 1,430 crore from domestic and international investors through a follow-on issuance of InvIT.

The funds will be used to part finance the InvIT’s acquisition of three additional road projects from NHAI.

Launched in November 2021, NHAI InvIT had raised Rs 8,011 crore for NHAI in its maiden round, with an initial portfolio of five operating toll roads of an aggregate length of 390 km. With the acquisition of three additional road projects, NHAI InvIT will own, operate and maintain a portfolio of eight operating toll roads with an aggregate length of 636 km spread across the states of Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, Telangana and Uttar Pradesh, with concession period ranging between 20 to 30 years, NHAI said in a statement.

Also Read: Govt to approach capital market this month to raise Rs 2,500 crore for three road projects

In the roads sector, around Rs 33,000 crore asset monetization is planned for FY23 including up to Rs 10,000 crore expected by the NHAI through InvITs. NHAI expected to garner the rest from the securitisation of toll receivables from expressways and Transfer-Operate-Transfer (ToT) models.

The latest round of placement of units with institutional investors witnessed strong demand from both existing investors as well as new investors. The units have been subscribed by a gamut of institutional investors including Canada Pension Plan Investment Board, Ontario Teachers’ Pension Plan Board, State Bank of India, SBI Pension Fund, SBI Mutual Fund, IOCL Employee Provident Fund, L&T Staff Provident Fund, Rajasthan Rajya Vidyut Karamchari Pension Fund, TATA AIG and Star Union Daiichi Life Insurance.

NHAI subscribed to the units through preferential allotment to maintain its unitholding of at least 15%. The units were subscribed through a book build process at Rs 109 per unit, at a premium over the floor price of Rs 107.12 per unit.